Find out nominal and effective rates

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Exactly how long will it take for your money to quadruple at 6.54% compounded monthly? Jack is considering alternative three-year investment proposals from different banks for his $20,000 principal. RBC says that if he invests his money with them, he will have $23,841.78 using quarterly compounding. CIBC indicates that he would have $23,607.15 using monthly compounding. What nominal and effective rates are being offered by each bank?

For the past four years, Darren has been saving up for a college fund for his oldest daughter. He deposited $5,000 initially, followed by annual deposits of $5,000, $4,000, $3,600, and $5,000. The money was initially invested at 5.75% compounded semi-annually for the first two years before increasing to 6% compounded quarterly for the balance of the investment. How much money is in the college fund today?

Reference no: EM132828291

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